How To Double Your Money In The Market

Josh Brown here. I’m a financial advisor and the CEO of Ritholtz Wealth Management. One of my favorite things to do when I talk to investors is show them how compounding works. The look on people's faces never disappoints. But demonstrating the rapid growth of dollars is more than just a parlor trick. It's one of the most important concepts that investors need to learn — the younger they are when they learn it, the better.

In a typical public school curriculum, children are taught geometry, trigonometry, fractions, decimals and algebra. But when I show they how money can double in an investment, again and again during the course of their lives, they're still blown away.

Especially when I explain that time is a better friend to the investor than experience, connections, expertise, or even research.

And yet so few people seem to have a good grasp of the power of compounding. So I hit the streets of New York in May 2019 to spread the word.

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How To Double Your Money In The Market

[Austden]

"Not me but like the proverbial person" 😂😂

[Artem-texn]

Instructions unclear, I have now put my life savings into GME call options

[rhvre]

3:14 "You can trust me, I'm on tv". Great reason.

[evanchen]

It's easy for us to visualize addition or subtraction. However, this video really shows how hard it is for humans to visualize and grasp the concept of exponentials/compounding!

[ariefraiser]

This is part of the reason for that phrase you will no doubt run across if you get even somewhat serious about investing:
"Time in the market beats timing the market"

[LifeofKairo]

Yep those first $3b were a lot harder for Warren Buffett to make than the next $80b

👑👑👑

[JJs_playground]

That rice doubling on a chess board is mind boggling.

Or another analogy, I like to think of, _if you took a penny and doubled it every day for 30 days you would have over 10 million dollars by the end._

Great video.

[DaveM-FFB]

Once you realize you don't need to be a financial expert to average 10% annual returns with a mutual fund, the concept of compounding and the rule of 72 becomes very exciting. It's the easiest way to go from middleclass to millionaire.

[Alejandracamacho]

Despite economic crises one needs to invest

[patersondavis]

*Poor mindset immediately sees a surplus as an opportunity for consumption.* *Rich mindset seeks to spend their time, * *Resources, * *And energy on work that continues to pay off long after the effort has been invested.*

[TheDanaYiShow]

I half expected this to be a scammy guru video before realizing it was from CNBC! Really good lessons and goes to show how people reallyyyy underestimate the power of compound interest, great video!

[FinancialShinanigan]

Should follow up on who he interviewed and see if they actually invested. Sadly short term pleasures make it hard for most people to invest long term

[hassanmuhammad]

compunding effect. not only works in numbers but also in skills. do it consistently.

[CaseyBurnsInvesting]

The rule of 72. 72/Your returns = years to double your money.

[andreabratis]

I don't think that there is any other legitimate way to earn money nowadays rather than investing

[Shnimberz]

This video was incredible and mind blowing!
Please make more videos like these!!!

[investinstyle-financeinves]

Waiting for the commenters to tell me to buy Bitcoin to double my money

[emilyfranklin]

Stock can drop from top to bottom and still be a 60 bagger. All this in 10y. investing is a very long journey where our temperament gets tested. have to have the capacity to suffer for long periods. have lived through the examples above, naming the stock today is pointless.

[av_cali]

this is like the most important video i saw. time to research and invest in compounding.

[Alecksander]

Ahahaha the push up example hit hard 😂